Geneva District 304 On Financial Watch List

March 23, 2001|By Tracy Dell'Angela, Tribune staff reporter.

It's hardly an honor to land on the state's list of most financially troubled school districts, but officials in Geneva District 304 are hoping the designation will convince voters of the need for a tax increase.

The Geneva district was named this week as one of 10 school systems on the State Board of Education's financial watch list, a designation for districts operating at a deficit with depleted cash reserves.

The announcement comes just two weeks before Geneva voters will consider a 30-cent tax rate increase for the district's education fund.

Voters narrowly defeated the same increase in November, after which school officials warned that widespread cuts were inevitable without a tax increase.

"I don't know if it's a shameful thing, but it is a validation. ... We're not just crying wolf. It's a reality," said Supt. John Murphy. "I don't think anyone wants to see the name of their school district on the list, and not just because of the ignominy of it. This says we need to put our financial house in order."

For the last two years, the district has operated at a $2.5 million deficit, which Murphy blames on the state-mandated county tax caps. The district estimates the cap has resulted in $11.6 million of lost revenue, money the district has not been able to collect despite rising property values and residential growth.

The district's per-pupil spending of $6,700 is below the state average, and its average class size of almost 26 students is well above the state average of 18.

Murphy said the district has made cuts and will have to make more, even if voters approve the tax rate increase.

Dawn Vogelsberg, a chairwoman of the referendum committee and a parent from Harrison Street School, says the state's recognition of the district's financial problems can only help when the referendum question faces a vote April 3.

"This confirms that this is not some superfluous request," Vogelsberg said.

Though some districts do everything they can to avoid the stigma, many have used their presence on the list to make their case to tax-weary voters, said Gary Ey, the State Board of Education's deputy superintendent for finance.

"It helps their credibility ... and conveys the seriousness of the district's finances," Ey said.